Schools. Spending Limits on Administration. Initiative Statute.
	Official Title and Summary prepared by the Attorney General
Full Text of Proposed Law	SCHOOLS. SPENDING LIMITS ON ADMINISTRATION. INITIATIVE STATUTE.

• Prohibits school districts from spending more than five percent of funds from all sources for costs of general administration, instructional resources supervision, and supervision of instruction, beginning fiscal year 1999-2000.

• Requires State Board of Education to fine districts failing to comply.

• Requires districts to publish percentage of funds expended on administrative costs annually, report expenditure information to State Board of Education, and undertake performance audits and fiscal efficiency reviews every five years.

• Requires districts to develop systems which indicate the intended contribution of each projected expenditure to the achievement of specific performance objectives.
  

Summary of Legislative Analyst's
Estimate of Net State and Local Government Fiscal Impact:

• This measure would require school districts to reduce administrative costs (as defined by the measure) by up to $700 million. To comply with this requirement, districts could more accurately account for administrative costs, move operations from central locations to school sites, and reduce administrative spending.

• The measure also would result in costs of around $10 million annually for performance based budgeting, and around $20 million every five years for auditing requirements.

Argument in Favor of Proposition 223

Rebuttal to Argument in Favor of Proposition 223

Argument Against Proposition 223

Rebuttal to Argument Against Proposition 223